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   February 23, 2009

   VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED

   AND FACSIMILE AT (909) 230-6889

   Macally USA Mace Group, Inc.

   Mike Chen, President

   4601 E. Airport Drive

   Ontario, CA 91761

   Re: File No. EB-08-SE-531

   Dear Mr. Chen:

   This is an official CITATION, issued pursuant to Section 503(b)(5) of the
   Communications Act of 1934, as amended ("Act"), 47 U.S.C. S: 503(b)(5),
   for marketing unauthorized and non-compliant radio frequency devices in
   the United States in violation of Section 302(b) of the Act, 47 U.S.C. S:
   302a(b), and Sections 2.803 and 15.239(b) of the Commission's Rules
   ("Rules"), 47 C.F.R. S:S: 2.803 and 15.239(b). As explained below, future
   violations of the Commission's rules in this regard may subject your
   company to monetary forfeitures.

   By letter of inquiry ("LOI") dated June 18, 2008, the Spectrum Enforcement
   Division of the Commission's Enforcement Bureau initiated an investigation
   into whether Macally USA Mace Group, Inc. ("Macally) is marketing an
   unauthorized radio frequency device in the United States -- specifically,
   the FM Cup Transmitter. We received your response to the LOI on July 17,
   2008. You state therein that you began marketing the FM Cup Transmitter on
   February 17, 2006, that you have imported 88,245 FM Cup Transmitters into
   the United States and that you have sold and distributed 81,780 of units
   of that device in the United States. Additionally, you state that CML
   Development Limited ("CML") manufactured the FM Cup Transmitter between
   April 2006 and June 2007 and that Power 7 Technology ("Power 7") has
   manufactured it between April 2007 and the present.

   Pursuant to Section 15.201(b) of the Rules, 47 C.F.R. S: 15.201(b),
   intentional radiators, such as the FM Cup Transmitter, must be authorized
   in accordance with the Commission's certification procedures prior to the
   initiation of marketing in the United States. CML obtained an equipment
   certification for the FM Cup Transmitter on June 6, 2006, and Power 7
   obtained an equipment certification for the FM Cup Transmitter on July 11,
   2008. Thus, all FM Cup Transmitter units manufactured by CML and marketed
   by Macally before June 6, 2006, were apparently unauthorized, as were all
   FM Cup Transmitter units manufactured by Power 7 and marketed by Macally
   before July 11, 2008.

   Section 302(b) of the Act provides that "[n]o person shall manufacture,
   import, sell, offer for sale, or ship devices or home electronic equipment
   and systems, or use devices, which fail to comply with regulations
   promulgated pursuant to this section." Section 2.803(a)(1) of the
   Commission's implementing regulations provides that:

   no person shall sell or lease, or offer for sale or lease (including
   advertising for sale or lease), or import, ship, or distribute for the
   purpose of selling or leasing or offering for sale or lease, any radio
   frequency device unless ... [i]n the case of a device subject to
   certification, such device has been authorized by the Commission in
   accordance with the rules in this chapter and is properly identified and
   labeled as required by S: 2.925 and other relevant sections in this
   chapter.

   Under section 15.239(b) of the Rules, the field strength of any emission
   within the band of operation may not exceed 250 microvolts per meter at 3
   meters. Tests conducted by the FCC's Office of Engineering and Technology
   Laboratory on an FM Cup Transmitter obtained by the Enforcement Bureau in
   April 2008 indicate that emissions from the FM Cup Transmitter exceed the
   authorized level.

   Accordingly, it appears that Macally USA Mace Group, Inc., has violated
   Section 302(b) of the Act and Sections 2.803 and 15.239(b) of the Rules by
   marketing unauthorized and non-compliant radio frequency devices in the
   United States.

   If, after receipt of this citation, you violate the Communications Act or
   the Commission's rules in any manner described herein, the Commission may
   impose monetary forfeitures not to exceed $16,000 for each such violation
   or each day of a continuing violation.

   You may respond to this citation within 30 days from the date of this
   letter either through (1) a personal interview at the Commission's Field
   Office nearest to your place of business, or (2) a written statement. Your
   response should specify the actions that you are taking to ensure that you
   do not violate the Commission's rules governing the marketing of radio
   frequency equipment in the future.

   The nearest Commission field office appears to be the Los Angeles District
   Office, in Los Angeles, California. Please call Thomas D Fitz-Gibbon at
   202-418-0693 if you wish to schedule a personal interview. You should
   schedule any interview to take place within 30 days of the date of this
   letter. You should send any written statement within 30 days of the date
   of this letter to:

   Thomas D. Fitz-Gibbon

   Spectrum Enforcement Division

   Enforcement Bureau

   Re: EB-08-SE-531

   Federal Communications Commission

   445 12th Street, S.W., Rm. 3-A460

   Washington, D.C. 2055

   Under the Privacy Act of 1974, 5 U.S.C. S: 552(a)(e)(3), we are informing
   you that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment under 18 U.S.C. S: 1001.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   Kathryn Berthot

   Chief, Spectrum Enforcement Division

   Enforcement Bureau

   Federal Communications Commission

   Section 15.3(o) of the Rules defines an "intentional radiator" as a
   "device that intentionally generates and emits radio frequency energy by
   radiation or induction." 47 C.F.R. S: 15.3(o).

   Section 2.803(e)(4) of the Rules defines "marketing" as the "sale or
   lease, or offering to sale or lease, including advertising for sale or
   lease, or importation, shipment or distribution for the purpose of selling
   or leasing or offering for sale or lease." 47 C.F.R. S: 2.803(e)(4).

   See 47 C.F.R. S: 1.80(b)(3).

   Federal Communications Commission DA 09-407

   1

   2

   Federal Communications Commission DA 09-407

                       FEDERAL COMMUNICATIONS COMMISSION

                            WASHINGTON, D.C.  20554